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A new way of demand management: Lean-Agile Journey

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A new way of demand management: Lean-Agile Journey

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how lean portfolio management disrupts the traditional way of demand management. shown with the use case of Migros

how lean portfolio management disrupts the traditional way of demand management. shown with the use case of Migros

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A new way of demand management: Lean-Agile Journey

  1. 1. Lean-Agile Journey @ Migros Dr. Joël Krapf Head Lean Portfolio & Agile Transformation A new way of «demand management»
  2. 2. largest employer in Switzerland ~100k employees
  3. 3. 20.09.2021 | 3 Lean-Agile Journey @ Migros | Joël Krapf Migros is the largest employer in Switzerland Central Group IT within a ONE- company structure Central Group IT in a holding structure Shared Services partialy decentralized and centralized What do you think: how is our IT departement organized? A B C
  4. 4. 20.09.2021 | 4 Lean-Agile Journey @ Migros | Joël Krapf What do you think: how is the IT Departement organized? 8206 8838 Menti.com
  5. 5. 20.09.2021 | 5 Lean-Agile Journey @ Migros | Joël Krapf Facts & Figures about Migros Revenue (in Mio.) Revenue per Industry (in %) Employees Other facts
  6. 6. 20.09.2021 | 6 Lean-Agile Journey @ Migros | Joël Krapf My passion is enabling organizations becoming (more) successful At Migros since 3 years 10+ years of experience in transformation management (in consulting & industry) PhD in Organisational Agility www.linkedin.com/in/joelkrapf www.joel-krapf.com Dr. Joël Krapf Head Lean Portfolio & Agile Transformation About me
  7. 7. Why lean-agile?
  8. 8. 20.09.2021 | 8 Lean-Agile Journey @ Migros | Joël Krapf We all know it …
  9. 9. 20.09.2021 | 9 Lean-Agile Journey @ Migros | Joël Krapf Employees & Budget Idea, Project, Requirement etc. Idea, Project, Requirement etc. Idea, Project, Requirement etc. Idea, Project, Requirement etc. Idea, Project, Requirement etc. Idea, Project, Requirement etc. Idea, Project, Requirement etc. Idea, Project, Requirement etc. Idea, Project, Requirement etc. Idea, Project, Requirement etc. Idea, Project, Requirement etc. Idea, Project, Requirement etc. Idea, Project, Requirement etc. Idea, Project, Requirement etc. Idea, Project, Requirement etc. Idea, Project, Requirement etc. Idea, Project, Requirement etc. Idea, Project, Requirement etc. Idea, Project, Requirement etc. … push without prioritization
  10. 10. 20.09.2021 | 10 Lean-Agile Journey @ Migros | Joël Krapf How can you relate to this situation? 8206 8838 Menti.com
  11. 11. 20.09.2021 | 11 Lean-Agile Journey @ Migros | Joël Krapf Better Value Sooner Safer Happier
  12. 12. 20.09.2021 | 12 Lean-Agile Journey @ Migros | Joël Krapf Retail market is changing significantly – leading to new challenges even for a giant such a Migros External Challenges New competition (online & offline) Decreasing market share New customer expectation
  13. 13. 20.09.2021 | 13 Lean-Agile Journey @ Migros | Joël Krapf Our organisation and collaboration did not fit market needs Internal Challenges Low innovation focus Low collaboration Low customer orientation
  14. 14. Planning Context 20.09.2021 | 14 F.A.I.L First Attempt in Learning (2018 - 2020)
  15. 15. 20.09.2021 | 15 Lean-Agile Journey @ Migros | Joël Krapf Since we did not have any clear demand processes, we implemented a traditional demand management Project Portfolio Management IT Service Delivery (business-as-usual) Financial Planning Monitoring & Controlling Assess & Initiate Projects Strategy IT Program & Project Mgmt Initiation Realization Scoping Closing Project Finalization & Closing Portfolio Steering Demand Entry Demand Management Demand Priorization Demand Triage
  16. 16. 20.09.2021 | 16 Lean-Agile Journey @ Migros | Joël Krapf We introduced Business Partner Manager in order to own and streamline our demand management process Customer (actually internal partners on business side) Service Delivery Manager Business Partner Manager Project Manager Service Desk . Incident / Request Mgmt. Change Requests Project Management Business Relationship Mgmt. Demand Management
  17. 17. 20.09.2021 | 17 Lean-Agile Journey @ Migros | Joël Krapf We followed a traditional V-Model in order to implement our projects – with the common impediments organisation face with it 1 Not considering the operating costs in the business cases 2 Scope often not clearly defined 3 Project Manager not (or too late) involved in project initiation 4 Too much administration for small projects 5 Neglecting project controlling and closure
  18. 18. 20.09.2021 | 18 Lean-Agile Journey @ Migros | Joël Krapf Due to the mentioned issues with the traditional V-Model we introduced also a methodology for agile project management
  19. 19. 20.09.2021 | 19 Lean-Agile Journey @ Migros | Joël Krapf Who has implemented agile project management? 8206 8838 Menti.com
  20. 20. 20.09.2021 | 20 Lean-Agile Journey @ Migros | Joël Krapf Why didn’t we get better – even though we implemented agile project management? 8206 8838 Menti.com
  21. 21. 20.09.2021 | 21 S.A.I.L Second Attempt in Learning (since 2020)
  22. 22. Bes More Transparency regarding resources and dependencies 01 Better Time-2-Market 02 Clear Priorization of initiatives over all departements 03 Improvement of Delivery Reliability 04 Harmonization and Simplification of our Planning and prioritization Processes 05
  23. 23. 20.09.2021 | 23 Lean-Agile Journey @ Migros | Joël Krapf In order to achieve these goals we had to fundamentally change the way we do demand and portfolio management Traditional Project Portfolio Management Lean Portfolio Management Temporary project teams, teams form regularly new based on temporary projects Steady, fixed lean-agile Teams secure a continuous value delivery 1 Complex planning, financing and controlling at project level Funding at portfolio level 2 Many projects at the same time, one-time prioritization & capacity planning, overload Ongoing prioritization - implementation As soon as capacity 3 Speculative business cases and ROI, rare review Lean business cases and MVP, focus on business benefits and quick feedback 4 Progress by phase gates and milestones, measurement via tasks Progress „reporting“ through system demos 5
  24. 24. 20.09.2021 | 24 Lean-Agile Journey @ Migros | Joël Krapf Scaled Agile Framework for Lean Enterprises (SAFe) is our framework to achieve these new way of working
  25. 25. 20.09.2021 | 25 Lean-Agile Journey @ Migros | Joël Krapf The lean portfolio enables alignment with strategy and a focused implementation of the strategic themes Boards Strategic Portfolio Review Portfolio Sync Unit B Unit A Strategic Themes Strategic Steering Budgeting (incl Adjust) Target Goals/OKR Cadence: Quarterly Forecast: 1-3 Years Unit C Unit D Unit E Unit F Strategy Strategic Themes Financial Planning BPM Demand Handshakes 2 1 3 4 5 6 Tactical Steering Epic initiation Epic prioritization Epic steering Cadence: all 2-4 weeks Forecast: 6-12 months LPM Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Executive Board
  26. 26. 20.09.2021 | 26 Lean-Agile Journey @ Migros | Joël Krapf The Lean Portfolio Kanban is one of the essential tools in order to steer the projects in a lean-agile way Do not Implement ▪ Epics that have been canceled or stopped 6. Done ▪ Epic is done and has delivered its benefit 5. Re-Cap ▪ Review if Lean Business Case and DoD of Epic are fullfilled 4. Implement ▪ Epics are pulled by team / ART ▪ Epics wait in this state till finished 3. Backlog ▪ Epics are ready to be implemented ▪ Epics wait in this state till a team / ART has free capacities and pulls it ▪ Prioritization based on WSJF 2. Analyse ▪ Analysis based on Definition of Ready ▪ Create Lean Business Case ▪ Prioritization based on WSJF 1. Funnel ▪ (All) new ideas that need ~6-12 months to implement ▪ Epic Hypothese as a lean way of scoping investment and benefit ▪ Prioritization based on WSJF
  27. 27. 20.09.2021 | 27 Lean-Agile Journey @ Migros | Joël Krapf Epics are implemented by Agile Release Trains resp. Agile Teams that plan their Product Increments every 12 weeks Sprint 1 Sprint 2 Sprint 3 Sprint 4 Sprint 5 Innovation & Planning Sprint Monday Tuesday Wednesday Thursday Friday Monday Tuesday Wednesday Thursday Friday Thursday Monday Tuesday Wednesday Friday Monday Tuesday Wednesday Thursday Friday Sprint Sprint Sprint Planning Demo / Review & Retro Sprint Sprint Sprint Sprint Sprint Sprint Sprint Sprint Sprint PI Planning Learning, Innovation & Puffer PI-Planning PI-Planning 2 weeks 2 weeks 2 weeks 2 weeks 2 weeks 2 weeks Learning, Innovation & Puffer Learning, Innovation & Puffer Learning, Innovation & Puffer Planning Readiness, Pre- Planning Inspect and Adapt Sprint Puffer
  28. 28. 20.09.2021 | 28 Lean-Agile Journey @ Migros | Joël Krapf Who has also implemented a lean portfolio management? 8206 8838 Menti.com
  29. 29. 20.09.2021 | 29 Lean-Agile Journey @ Migros | Joël Krapf Where do we face difficulties in implementing LPM? 8206 8838 Menti.com
  30. 30. Lean-Agile is a Journey
  31. 31. | 31 Transformations are disruptive changes (for an organisation) They only are successfull if people change their way of working This is why Transformations are only possible in small steps
  32. 32. 20.09.2021 Lean-Agile Journey | Joël Krapf | 32 Right now we have over 1’000 people from Business & Technology using lean-agile ways of working In Abklärung Im Aufbau Etabliert No Line Portfolio (Sep 20) Core Technology Solutions (Jun 20) Corporate Solutions Finance Solutions (Mrz 21) Dept. 0 + 1, QM, Gesundheit, Kultur & Soziales, Nachhaltigkeit, Kommunikation & Medien, Freizeit, Klubschulen & Stiftungen HR Solutions (Jan 21) Industry / Production Solutions (Mai 21) In Abklärung Im Aufbau Etabliert Lean Portfolios Agile Release Trains Kein ART geplant. Einzelne agile Teams ART M-Hub (Okt 20) ART Retail Core (Mrz 21) ART Customer & Product (Mrz 21) ART M-Transform (Jun 20) ART Core Technology (Mrz 22) ART Digital Workplace & Collaboration (Mrz 21) ART Retail POS (Mrz 21) ART Finanzen (Dez 21) Einzelne agile Teams
  33. 33. 20.09.2021 | 33 Lean-Agile Journey @ Migros | Joël Krapf Our journey started in 2019 and it will continue to evolve Key Activities ✓ (Introduce (business) agility "holistically" in first organizational units / value streams ✓ Establish further agile teams & teams of teams (e.g. Agile Release Trains) ✓ Coach Agile Teams & Teams of Teams, focusing on the "Why". ✓ Increase leadership support ✓ Collect and communicate more success stories & journey reports, so that the "Why" inspires more people. Phase 3 (2021) Agile Value Streams Key Activities ▪ Introduce (business) agility "holistically" in further organizational units / value streams ▪ Further increase leadership support ▪ Collect and communicate more success stories & journey stories so that the "why" inspires more and more people ▪ Establish (business) agility as an organizational competence and continuously develop it further Phase 4 (2022+) Organisational Agility Key Activities ✓ Establish first agile teams & team of teams (e.g. agile release trains) ✓ Coach Agile teams to evolve step by step, focusing on the "Why". ✓ Increase Leadership Support ✓ Collect and communicate more success stories & journey reports, so that the "Why" inspires more and more people. Phase 2 (2020) Agile Teams & Team of Teams Key Activities ✓ Develop case for change and change vision (together) ✓ Establish LACE and Agile CoP ✓ Awareness (or support) of (relevant) leadership teams ✓ Communicate the "why" of the Lean-Agile Journey ✓ Basic training of all employees ✓ Realize and communicate first success stories Phase 1 (2019) Awareness und Basics
  34. 34. What have we learned?
  35. 35. 20.09.2021 | 35 Lean-Agile Journey @ Migros | Joël Krapf Start with a pilot where you have (1) organisational support, (2) a real problem to solve and (3) a good success case for a subsequent scaling Ensure the 3 fundamental drives of change: Leadership support, grassroots movement and transformation team Shu Ha Ri: First learn an established framework before you evolve to your own adapation of lean-agile principles Learning capacity determines the change speed: Start slow and with small steps Invest enough time in defining and communicating the why 5 4 3 2 1 What have we learned?
  36. 36. Q&A

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